Why rewarding customer loyalty should be a priority for forecourt operators

Steve Hoban, CEO of Suresite Group, writes about the benefits of loyalty schemes for forecourt operators and the importance of collecting data.

When it comes to purchasing fuel, let’s face it, it’s a grudge purchase. Forecourt operators recognise that there needs to be a motivator for customers to visit their site - especially with competitive fuel pricing and location both key factors when it comes to where we buy our fuel.

Suresite data shows that over the past twelve months there has been less demand for fuel with people unable to travel due to local and national lockdowns. Yet these travel restrictions have also led to growth in non-fuel retail with customers choosing to shop locally.

So, with existing customers shopping more frequently, coupled with an increase in new customers choosing to use smaller local amenities, it’s important to recognise and reward your customer base for their new or continued custom. Particularly when this can be leveraged for when fuel spend returns to normal levels. A loyalty scheme is a great way to do this with benefits both for the forecourt operator and the customer!

Customer loyalty in the forecourt sector

Loyalty has been around in the fuel sector for many years and therefore many forecourts already have a programme in place. Although a loyalty scheme cannot increase your fuel spending - after all your fuel tank is a fixed size - they can be a motivator to drive past a competitor’s site, as well as encourage non-fuel purchases.

For forecourt operators, there has never been a better time to leverage loyalty data to shore up new spending patterns or win back fuel spend as lockdown eases. To motivate your customers to sign up for a loyalty scheme you need to demonstrate value. This can be achieved through a combination of fuel and non-fuel tailored offers.

Supermarket giant Tesco is a great example of how a loyalty programme can be used to encourage increased in-store spending by rewarding customers with discounted fuel prices. Equally they also reward spend on fuel with Clubcard points to use either for shopping discounts or merchant reward incentives.

Esso's recent Nectar partnership is another great example of driving value for customers. Nectar’s recent partnership with Avios means Nectar and Avios points are now interchangeable with no penalty, strengthening Esso’s value proposition.

Shell’s GO+ reward scheme - which replaced its popular Drivers’ Club scheme - rewards its customers for visit frequency for both fuel and retail spend through an always-on discount for its members. From fuel rewards to bonus rewards to partner rewards, this is a new concept for the forecourt retail sector. It also offers digital format, as well as a more traditional plastic card or a key fob, with personalised rewards based on how their customers use their services using data harnessed across both fuel and retail spend.

Why rewarding your customers will bring you valuable data

The driver for the introduction of any loyalty programme needs to be the collection of data. This takes two forms - identifying patterns in customer behaviour to encourage increased spending, and personal contact data for marketing purposes.

Purchasing data can be used to learn what your customers buy, when and how much. This can then be used to construct a compelling offer to drive sales and profit.

Personal contact data can be used via email or in-app messaging to effectively market your offers, promotions and discounts to your customers - hooking them in before they’ve even stepped foot in your store.

Crucially, all your customers need to be both aware of your loyalty scheme and signed up for it. Implementing a quick, easy and efficient sign-up process is key. Once data is obtained, work with your service provider to ensure that data analysis allows you to create personalised and tailored offers for your customers. This will not only help you to understand your customers better but will also improve the customer journey.

Written by Steve Hoban, CEO, Suresite Group